a. M&R Company provided $2,000 in services to customers that are expected to pay
ID: 2334509 • Letter: A
Question
a. M&R Company provided $2,000 in services to customers that are expected to pay the company sometime in January following the company's year-end b. Wage expenses of $1,000 have been incurred but are not paid as of December 31. c, M&R Company has a $5,000 bank loan and has incurred (but not recorded) 8% interest expense of $400 for the year ended December 31. The company will pay the $400 interest in cash on January 2 following the company's year-end d. M&R Company hired a firm to provide lawn services during December for $500. M&R will pay for December lawn services on January 15 following the company's year-end e. M&R Company has earned $200 in interest revenue from investments for the year ended December 31. The interest revenue will be received on January 15 following the company's year-end f. Salary expenses of $900 have been earned by supervisors but not paid as of December 31. Prepare year-end adjusting journal entries for M&R Company as of December 31 for each of the above separate cases. View transaction list Journal entry worksheet 2 M&R Company provided $2,000 in services to customers that are expected to pay the company sometime in January following the company's year-end Note: Enter debits before credits. Transaction General Journal Debit Credit Accounts receivable 2,000 Cash 2,000Explanation / Answer
a.
Accounts Receivable A/c Dr 2,000
To revenue a/c2,000
(Being services provided to customer)
b.
Wages Expenses A/c Dr 1,000
To Wages outstanding A/c1,000
(Being wages incurred but not paid recorded)
c.
Interest Expense A/c . Dr 400
To Interest Payable/Outstanding a/c 400
(Being interest expense incurred but not paid recorded)
d.
Lawn Service Expenses A/c Dr 500
To Lawn Services outstanding/Payable a/c 500
(Being liability for expense recorded)
e.
Interest Receivable A/c Dr 200
To Interest on Investment A/c200
(Being interest earned but not received recorded)
f.
Salary A/c Dr 900
To salary outstanding/payable a/c900
(Being salary expense incurred but not paid recorded)
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